Sports Fans: Nike And Finish Line Earnings On Mark?

Olympics fever runs high and the European soccer championship is under way, drawing attention to sports in general, and to Nike's (NKE) new products.

Can they give it an energy boost? The world's biggest sports apparel maker will announce fiscal fourth quarter results after the market close Thursday.

Like other companies, Nike is faced with rising costs for basic commodities and a weak global economy, which could impact results. In Europe, where the London summer Olympics will kick off in 29 days, recession has returned.

Nike shares edged down 0.4% Wednesday while apparel rivals Lululemon (LULU) and Under Armour (UA) both fell more than 3%. Finish Line (FINL), which sells Nike and other shoes, rose 1.3%. It reports earnings Friday.

Thursday Nike is expected to report a 10.5% hike in earnings vs the same quarter last year, to $1.37 per share. Revenue is seen rising about 13% to $6.51 billion on accelerating sales of its recently introduced FlyKnit lightweight shoes and Nike+ FuelBand, which tracks movement and calories burned.

Nike has beaten estimates 17 of the past 18 quarters, setting the bar high for itself.

The global retailer's results are closely watched because they can provide clues to the state of the global and U.S. economies.

One thing investors will be looking at is Nike's gross margin figure. The profitability measure dropped to 43.8% in its February-ending quarter from 45.8% a year earlier.

Dividend investors will be listening for word of dividend changes. Nike has paid dividends 28 years in a row, and increased its dividend the last 10 straight years.

Nike on May 31 announced plans to sell two of its Brands, Cole Haan and Umbro, to focus on its flagship Nike, and popular Jordan, Converse and Hurley brands.

"We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the Nike brand," CEO Mark Parker said at the time.

Cole Haan specializes in casual and dress leather shoes and bags, and Umbro is a soccer apparel brand based in the U.K. Nike expects to complete the sales by mid-2013.

Nike also announced, on June 4, that Bob Hurley, founder and chairman of its Hurley International surf and skateboard products unit, will assume the role of interim CEO, replacing Michael Egeck who left the company.

Wolverine World Wide (WWW), which makes casual, rugged, outdoor and work shoes and boots, also rose pennies, to close at 38.28. High-end branded footwear and clothing company Kenneth Cole Productions (KCP) rose 2 cents to 15.06.

Olympics fever runs high and the European soccer championship is under way, drawing attention to sports in general, and to Nike's (NKE) new products.

Can they give it an energy boost? The world's biggest sports apparel maker will announce fiscal fourth quarter results after the market close Thursday.

Like other companies, Nike is faced with rising costs for basic commodities and a weak global economy, which could impact results. In Europe, where the London summer Olympics will kick off in 29 days, recession has returned.

Nike shares edged down 0.4% Wednesday while apparel rivals Lululemon (LULU) and Under Armour (UA) both fell more than 3%. Finish Line (FINL), which sells Nike and other shoes, rose 1.3%. It reports earnings Friday.

Thursday Nike is expected to report a 10.5% hike in earnings vs the same quarter last year, to $1.37 per share. Revenue is seen rising about 13% to $6.51 billion on accelerating sales of its recently introduced FlyKnit lightweight shoes and Nike+ FuelBand, which tracks movement and calories burned.

Nike has beaten estimates 17 of the past 18 quarters, setting the bar high for itself.

The global retailer's results are closely watched because they can provide clues to the state of the global and U.S. economies.

One thing investors will be looking at is Nike's gross margin figure. The profitability measure dropped to 43.8% in its February-ending quarter from 45.8% a year earlier.

Dividend investors will be listening for word of dividend changes. Nike has paid dividends 28 years in a row, and increased its dividend the last 10 straight years.

Nike on May 31 announced plans to sell two of its Brands, Cole Haan and Umbro, to focus on its flagship Nike, and popular Jordan, Converse and Hurley brands.

"We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the Nike brand," CEO Mark Parker said at the time.

Cole Haan specializes in casual and dress leather shoes and bags, and Umbro is a soccer apparel brand based in the U.K. Nike expects to complete the sales by mid-2013.

Nike also announced, on June 4, that Bob Hurley, founder and chairman of its Hurley International surf and skateboard products unit, will assume the role of interim CEO, replacing Michael Egeck who left the company.

Wolverine World Wide (WWW), which makes casual, rugged, outdoor and work shoes and boots, also rose pennies, to close at 38.28. High-end branded footwear and clothing company Kenneth Cole Productions (KCP) rose 2 cents to 15.06.

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02/25/2015 12:52 PM ET

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